According to Briefing.com, Abercrombie & Fitch Co. (NYSE: ANF) on Friday reported sharply lower sales figures for its third quarter but cost controls helped the company easily top earnings estimates.

Abercrombie & Fitch reported third quarter earnings of $0.30 per share, excluding nonrecurring items, $0.10 better than the First Call consensus of $0.20.

Revenues fell 14.6% year-over-year to $765.4 million, in-line with the $764.5 million consensus.

Same-store sales decreased 22% from the prior year.

ANF reduced marketing, general and administrative expenses in the third quarter to $88.1 million from $105.0 million in the same period last year.  Lower costs reflect reductions related to employee compensation and benefits, travel, outside services and marketing, and the benefit of an insurance settlement.

In reaction to the news, ANF stock was up $3.92, closing at 40.687, a gain of 10.6%

Technical analysis of ANF:  ANF is in a long-term up-trend.  The stock is making higher highs and higher lows above a rising 200-day moving average, and on Friday made a new high on sharply rising volume.  ANF is now trading 45% above its 200-day moving average and appears to be picking up some upside momentum.  Relative Strength Differential (RSD) is at 24%, just a hair below the minimum threshold of 25%.  If there is any follow-through at all to Friday’s rally ANF could easily achieve an RSD reading of 25% or higher, which would mean it is strong enough to offer way above-average returns.  So, while it is not exactly at a point at which one would want to be a buyer for a holding period of several weeks to several months, it is certainly strong enough to keep on your watch list and if it can sustain the current rally it will become a good candidate for buying when the timing is right.  





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